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Alaska Air's (ALK) Arm Horizon Air Pilots Confirm New Contract

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Alaska Air Group, Inc.’s (ALK - Free Report) subsidiary Horizon Air has confirmed that its team of more than 700 pilots have voted on a new agreement.

Horizon Air’s more than 700 pilots are represented by the International Brotherhood of Teamsters (IBT). The new deal is aimed at helping the company’s pilots and holding back talent as mainline airlines continue to recruit pilots (at record levels) away from regional airlines. The deal also includes issues related to wage increases, retirement benefit plans, commuter policies and instructor benefits.

The deal passed by 99% after receiving more than 91% of votes from Horizon pilots. A tentative deal was inked with the IBT on Sep 2, effective immediately upon this latest vote.

Horizon Air serves more than 45 cities across the Pacific Northwest, California, the Midwest and British Columbia and Alberta in Canada. It has offices in Washington, Oregon, Idaho and Alaska. Horizon has pilot crew bases in Anchorage, Boise, Everett, Medford, Portland, Seattle and Spokane.

The transition to a single fleet of Embraer 175 aircraft and pilot shortage have resulted in a temporary downfall in Horizon's scheduled flying. Despite such adversities, Horizon has been continuously serving its communities.

Joe Sprague, president of Horizon Air, stated, "We are focused on making Horizon the regional carrier of choice for pilots, and this agreement positions us well. I'm grateful to our pilots and to our colleagues at the IBT for their collaboration and hard work in getting to this point. Together, we are positioning Horizon for a strong future."

Horizon pilot and IBT 1224 executive council chairman Henry Simkins, stated, "We identified what was important to our pilot group and worked to implement an approach that will help Horizon Air retain an experienced workforce and attract new talent. We appreciate management's investment in our skilled professionals that continue to safely deliver our wonderful passengers every day."

The new deal with Horizon pilots complements other companies trying to diversify and expand the pilot pipeline through investments in the Ascend Pilot Academy and the Pilot Development Program. Alaska Airlines and Horizon Air, subsidiaries of Alaska Air, plan to recruit 500 pilots each year till 2025.

Considering the current scenario of ongoing airline industry issues of pilot shortages and wage increases, the latest announcement looks encouraging for Horizon Air to stay competitive in attracting and retaining pilots.

Zacks Rank and Stocks to Consider

Currently, Alaska carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks from the broader Zacks Transportation sector are GATX Corporation (GATX - Free Report) , Triton International Limited and Teekay Tankers Ltd. (TNK - Free Report) , each currently carrying a Zacks Rank #2 (Buy).

GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 12.3% over the past year.

Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. The company has a long-term expected growth rate of 10%.

The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 22.2% over the past year.

Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.


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